1/15 depa4 1. 2. 3. 5 Which of the following is an employment tax? 1. The gift tax b. FICA tax c. Customs duties d. Excise taxes Which of the following amounts is not indexed to inflation under the tax law? 1. The standard deduction b. Personal and dependency exemptions c. The child care credit d. The tax brackets The total FICA tax rate imposed on individunl taxpayers is comprised of which of the following amounts? OASDI rate plus the FUTA rate b. OASDI rate less FUTA rate c. OASDI rate plus Medicare rate d. OASDI rate less Medicare rate The installment method of reporting gains can be justified based on . Mitigation of the annual accounting period. 6. Wherewithal to pay. c. Social considerations d. Both mitigation of the annual accounting period and wherewithal to pay In terms of probability, which of the following taxpayers would be least likely to be audited by the IRS? a. Taxpayer owns and operates a check-cashing service b. Taxpayer is an employed electrician. c. Tuxpayer just received a $3 million personal injury award as a result of a lawsuit. d. Taxpayer just won a $1 million slot machine jackpot at a Las Vegas casino. Which, if any, of the following taxes are proportional (rather than progressive)? a. State general sales tax b. Federal individual income tax c. Federal estate tax d. Federal gift tax Which of the following statements concerning IRS audits is most correct? 2. A significant percentage of all tax returns are audited annually. b. A taxpayer would expect an office audit where the issue involved was minor. c. A field audit is conducted at the taxpayer or taxpayer representative's premises. d. The taxpayer is notified of an audit by the filing of a Revenue Agent's Report. John received $140,000 when the state condemned his house for a new freeway. The house cost John $84,000. John Immediately purchased a new home for $140,000. What is John's taxable gain from this sale? .. 50 b. 556,000 c. $140,000 d. 584,000 6. 7. 10 1 mnt